Problem: In how many ways can four people sit in a row of five chairs?
Solution: Have the youngest sit first, then the next youngest, and so on.  The first person has 5 choices.  No matter where the first person sits, the next person has 4 choices.  No matter where the first two people sit, the third person has 3 choices.  The fourth person then has 2 choices.  Therefore, there are $5\cdot 4\cdot 3\cdot 2 = \boxed{120}$ ways for the four people to sit.